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DECISION

Decision No. 240/QD-TTg of February 17, 2011, promulgating criteria for planning the development of notarization-practicing organizations in Vietnam through 2020

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to November 29, 2006 Law No. 82/2006/QH11 on Notarization;

Pursuant to the Government’s Decree No. 02/2008/ND-CP of January 4, 2008, detailing and guiding a number of articles of the Law on Notarization;

Pursuant to the Prime Minister’s Decision No. 250/QD-TTg of February 10, 2010, approving the Scheme on formulation of the master plan on development of notarization-practicing organizations in Vietnam through 2020;

At the proposal of the Minister of Justice,

DECIDES:

Article 1. To promulgate together with this Decision criteria for planning the development of notarization-practicing organizations in Vietnam through 2020.

Article 2. This Decision takes effect on the date of its signing.

Article 3. The Ministry of Justice shall assume the prime responsibility for, and coordinate with concerned ministries and sectors in, implementing this Decision.

Ministers, heads of ministerial-level agencies and government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decision.

Criteria for planning the development of notarization-practicing organizations in Vietnam through 2020

(Promulgated together with the Prime Minister’s Decision No. 240/QD-TTg of February 17, 2011)

I. PURPOSES OF THE PROMULGATION OF PLANNING CRITERIA

The criteria for planning the development of notarization-practicing organizations in Vietnam through 2020 (below referred to as planning criteria) are promulgated to serve as a basis for provinces and centrally run cities to elaborate their plans on development of notarization-practicing organizations through 2020, meeting the objectives set forth in the Prime Minister’s Decision No. 250/QD-TTg of February 10, 2010, approving the Scheme on formulation of the master plan on development of notarization-practicing organizations in Vietnam through 2020, for summarization, elaboration and approval of the master plan on development of notarization-practicing organizations in Vietnam through 2020.

II. REQUIREMENTS ON THE ELABORATION OF PLANS

The elaboration of plans on development of notarization-practicing organizations must satisfy the following requirements:

1. Properly assessing the current situation of notarization organizations and activities, distribution of the network of notarization-practicing organizations, number and capacity of these organizations, current needs for notarization and forecast needs for notarization in subsequent periods in localities.

2. Appropriately applying the planning criteria, taking into account specific conditions and circumstances of localities; adequately, harmoniously and reasonably combining all of these planning criteria in the elaboration of plans on development of notarization-practicing organizations in localities.

3. Plans on development of notarization-practicing organizations must work out a “map” of the network of notarization-practicing organizations in localities, their number and locations according to specific development roadmaps, aiming to prevent the establishment of too many organizations while facilitating their rational development and quantitatively and qualitatively developing services provided by these organizations.

4. Complying with the policy and orientation for socialization of notarization activities, and developing mainly notary public offices; in difficulty-hit areas in which conditions do not permit the socialization of notarization activities, notary public offices may be established to meet the people’s needs for notarization, taking into account the roadmap for shifting notary public offices to operate under the mechanism of total or partial self-financing.

5. Assuring the state management and stable and sustainable development of notarization activities, contributing to the stable and sustainable development of the economy, meeting requirements of the national industrialization and modernization and international economic integration, and conforming to international practice.

III. PLANNING CRITERIA

A plan on development of notarization-practicing organizations shall be elaborated based on the following four basic criteria:

1. Planning unit

Administrative unit of urban district, rural district, town and provincial city (below collectively referred to as district level) shall be taken as the unit for planning notarization-practicing organizations.

2. Land area, geographical conditions, population size and distribution:

Based on land area, geographical conditions, traffic infrastructure system, and population size and distribution in district-level localities, locations of notarization-practicing organizations shall be planned on the following principles:

a) A network of notarization-practicing organizations shall be rationally distributed according to population size and populated areas;

b) Notarization-practicing organizations must not be located too densely in a certain planning unit;

c) People’s requests for notarization services shall be favorably satisfied.

3. Impacts of policies and laws on notarization activities

Based on changes in and reforms of policies and laws directly or indirectly impacting notarization activities (for example, the policy on transfer of the authentication of contracts and transactions from district- and commune-level People’s Committees to notarization-practicing organizations; the policy on urban planning and development; the policy on development of industrial parks and key economic zones; policy forecasts such as transition from compulsory notarization to voluntary notarization for some types of contracts and transactions, etc.) which may result in an increase or a reduction of the number of contracts and transactions subject to notarization, the number of notarization-practicing organizations to be developed shall be appropriately calculated and adjusted.

4. Social needs for notarization

Social needs for notarization are expressed through the number of contracts and transactions which need to be notarized, reflecting the general picture of the socio-economic development level, process and speed of urbanization, development of the real estate, capital, financial and banking markets, public awareness about law and relevant issues. Notarization need is a major criterion for planning the number of notarization-practicing organizations. The number of notarization-practicing organizations to be planned in a district-level area through 2020 shall be based on the following principles:

a) Planning at least one notarization-practicing organization for a district-level area;

b) Planning at most 2 notarization-practicing organizations for a district-level area with an average notarization need (under 6,000 contracts and transactions)year);

c) Planning at most 4 notarization-practicing organizations for a district-level area with a high notarization need (between 6,000 and under 12,000 contracts and transactions)year);

d) Planning at most 5 notarization-practicing organizations for a district-level area with a particularly high notarization need (over 12,000 contracts and transactions)year);

e) Assuring the sustainable, efficient and equal development of notarization activities; avoiding any off-track development trend and unfair competition. Combining the planning of the number of notarization-practicing organizations with the development of their size and quality and number of notaries public to fully satisfy local notarization needs;

f) In special cases in which it is necessary to develop more notarization-practicing organizations compared with the maximum number specified above, provincial-level People’s Committees shall clearly explain such development in their proposed plans to be submitted to the Ministry of Justice for consideration and submission to the Prime Minister for decision in the master plan.

IV. ORGANIZATION OF IMPLEMENTATION

1. Roadmap for development of notarization-practicing organizations

The number of notarization-practicing organizations per planning unit must be planned in line with the roadmap for development of notarization-practicing organizations which consists of two phases: 2011-2015 and 2016-2020, assuring appropriate development in each year and each period and that no more than 2 notarization-practicing organizations shall be planned for development in a planning unit per year.

2. Responsibilities of provincial-level People’s Committees:

To direct provincial-level Departments of Justice in assuming the prime responsibility for, and coordinating with provincial-level Departments of Planning and Investment; Home Affairs; Finance; Natural Resources and Environment; Industry and Trade; and Agriculture and Rural Development, and concerned agencies in their localities in, performing the following tasks:

a) Revising and revaluating their local schemes on development of notarization-practicing organizations which have been promulgated under Decree No. 02/2008/ND-CP.

b) Based on the criteria and requirements for planning the development of notarization-practicing organizations in Vietnam through 2020, supplementing, adjusting and proposing plans on development of notarization-practicing organizations in their provinces or centrally run cities, and finalizing and submitting proposed plans to the Ministry of Justice before April 15, 2011.

c) Assuring funds and other conditions for the elaboration of plans on development of notarization-practicing organizations in their localities.

3. Responsibilities of the Ministry of Justice and concerned ministries and sectors:

a) Responsibilities of the Ministry of Justice:

To assume the prime responsibility for, and coordinate with the Ministries of Planning and Investment; Natural Resources and Environment; and Finance, and concerned ministries and sectors in, appraising proposed plans on development of notarization-practicing organizations of provinces and centrally run cities and on that basis elaborating and submitting the master plan on notarization-practicing organizations in Vietnam through 2020 to the Prime Minister for approval.

b) Responsibilities of ministries and sectors:

The Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, the Ministry of Finance and concerned ministries and sectors shall coordinate with the Ministry of Justice in appraising proposed plans on notarization-practicing organizations of provinces and centrally run cities and elaborating and submitting the master plan on notarization-practicing organizations in Vietnam through 2020 to the Prime Minister for approval.